I know this has been asked a thousand times before but I am struggling to work out if i have available equity in my property to pay into the IVA. I don't understand the LTV thingy!
Mortgage outstanding: £135,941.20
Property valued today:
Estate agent 1: £150,000
Estate agent 2: £140-£145,000
The house is jointly owned with my husband who isn't in an IVA
Shall I provide both or just one valuation to my case worker? I checked on Zoopla and the average price in my area is £145,000.
Provide both of the valuations to your IP and let them work out whether any equity is due to the IVA, as the terms of the proposal will dictate what you have to do now. If your IVA follows the IVA protocol, then based on the above figures there should be nothing for you to have to raise.
I have looked out my chairmans report and it states the following ( this is the only part I can see re: equity release)
"During the 4th year of the voluntary arangement the supervisor is to obtain an independent market valuation of the property.The property is to be remortgaged and no less than 85% of the open market value and the debtor equitable interest to be paid to the supervisor before the end of the term. Should the debtor fail to introduce funds from the equity this will constitute a breach and the supervisor will convene a meeting of the creditors to decide an appropriate course of action"
I am not sure either so you need to speak to your IP. Most IVAs have the revaluation in the fifth year not the fourth and the actual wording seems confused. Was this a modification proposed by a creditor or was it written into the proposal?
My case worker today has said that the clause is only applicable if there's equity in the property which by my calculations ( mortgage £135,000 and highest valuation £147,500 ) there isn't?
There's no mention of equity anywhere else that I can see.
It is an odd modification.
'The property is to be remortgaged and no less than 85% of the open market value and the debtor equitable interest to be paid to the supervisor before the end of the term.'
This implies that the full equity is to be introduced on top of any remortgage and seems badly worded. There is equity but not at 85% loan to value but perhaps the intention was different to the actual wording. It is good that your case worker is taking a reasonable view and hopefully the IVA can be closed down as normal.
